The company’s actions have damaged American national security, the State Department noted.
The American company Keysight Technologies will pay a fine of $6.6 million to the US authorities for exporting software to Russia and China, which, according to Washington, “damaged American national security.” This is stated in the documentation of the State Department distributed on Monday.
“The State Department and Keysight have reached an agreement <…> to solve the problem of the alleged unauthorized export of technical data, and in this case, software used to test radar equipment on stationary and mobile platforms. Under the terms of the agreement reached, designed for 36 months, Keysight will pay an administrative fine of $6.6 million. The State Department agreed to suspend the payment of $2.5 million of this amount, provided that these funds will be used to implement measures approved by the State Department to correct the situation in accordance with the agreement reached,” the Foreign Ministry said in a statement. In addition, the State Department continued, the company should conduct an external audit to assess and improve the compliance program with regulatory requirements.
Damage to US interests
The explanation distributed by the department claims that Keysight’s actions were related to “some violations that related to unauthorized exports to Russia, a country subject to restrictive measures on the export of defense products.” The document also notes that “the violations were related to unauthorized export of technical data, including software,” in Russia, Australia, UK, Germany, India, Israel, Spain, Canada, China, Singapore, Turkey, France, Czech Republic, Switzerland, Sweden. Thus, in the period from January 9 to April 18, 2018, the company exported software to Russia, Israel, Canada, China, and Japan without obtaining the appropriate permission from the authorities.
Keysight informed the US government about possible violations, after which the authorities conducted a large-scale audit. “The US government analyzed the above activities and concluded that the export of Keysight to Russia and China harms US national security,” the document states.
“Keysight cooperated with the State Department, including <…> admitted the incriminated behavior, and took corrective measures <…>. For these reasons, the State Department decided that it is currently inappropriate to impose an administrative ban on the activities of Keysight,” the department concluded.